Now Reading: CBDT tightens TDS rules for property deals with non-resident sellers from October
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CBDT tightens TDS rules for property deals with non-resident sellers from October
CBDT tightens TDS rules for property deals with non-resident sellers from October
The Central Board of Direct Taxes (CBDT) has introduced more detailed reporting requirements for tax deducted at source (TDS) on immovable property transactions involving non-resident sellers, effective October 1, 2026. The CBDT…
The Central Board of Direct Taxes (CBDT) has introduced more detailed reporting requirements for tax deducted at source (TDS) on immovable property transactions involving non-resident sellers, effective October 1, 2026. The CBDT has amended the Income-tax Rules, 2026, and revised Form 132 and Form 141 to cover cases where a resident individual or Hindu undivided family (HUF) pays consideration for property bought from a non-resident.
A new Schedule E has been added to Form 141, requiring buyers to report the property's address and type, agreement and registration dates, stamp-duty value, and total sale consideration, along with details and shares of all buyers and sellers. The form also captures the seller's PAN, residential status, overseas address, Tax Residency Certificate number, and foreign tax identification number, with provisions for cases where the seller lacks a PAN.
Resident individual and HUF buyers will no longer require a TAN, and the TDS payment timeline extends to 30 days from the end of the relevant month. For instalment payments, buyers must indicate the payment sequence. "The amendment is a welcome step toward easing the ease of doing business for resident individuals and HUFs purchasing immovable property from non-residents," said CA Ashish Karundia, Founder, Ashish Karundia & Co.
Indian Opinion Analysis
The revised forms shift the reporting burden onto resident buyers, who must now detail non-resident sellers' tax status, including PAN or alternative identification, capital-gains classification, and instalment schedules. This gives tax authorities transaction-level data to cross-match TDS with the seller's return, likely reducing disputes over deduction rates. The removal of TAN requirements and the extended 30-day deposit window lower compliance costs for individual buyers and HUFs, which experts call a welcome easing. The practical test is how the pre-filling and overseas-identification rules work for sellers without a PAN, since errors could still trigger higher deduction. The effective date is October 1, 2026, with ongoing transactions split before and after that date subject to respective reporting requirements.
Source: economictimes.indiatimes.com
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